Transcripts For DW So 20240703

The one seemingly everlasting, huge, super stores on the outskirts of cities may have reached the end of their shelf life. Additional context to them change their closing down completely. Its becoming more and more difficult to invest. How do they compete . The how are they able to survive . Big super stores are not doing well. An entire sector is struggling. The. The big retail chains controls 70 percent of Food Supplies in europe. The agricultural and industrial sectors are directly impacted by this decline. To use it, these conversations can be very aggressive. So big Food Retailers are rushing to save what they can as the competition is already kicking off. Amazon wants to control the distribution of most of the goods in the world, and food is a huge part of the worlds economy to talk to the all total of a what do they need . So 10200. And they say that they have good intentions, and then theres no risk to us pocket for the home phone. So tell me, how can we trust such as johnny, what well do for her today, the world of large retail chains is divided into 2 parts. On the one hand, there are brands organized as cooperatives with independent stores, such as laclare or edit. On the other hand, the centrally managed corporations, most of which use the hyper market concept, such as the out casino or care for the french pioneer, which has been experiencing the most difficult period and its history for several years now. A large number of bits, hypermarkets are thought to be in financial difficulties. Theres a little tight, we want things to be small and manageable. Hypermarkets represent that the humanize ation of trying an excessive consumption to the time when environmental awareness is growing and the effects of our consumption to becoming visible. As soon as the, the large retail chains have not kept up with current trends. The but thats not the only reason for the crisis this sector is experiencing what is 2 plus one free mean, theres a nice day do you buy 2 items and get the 3rd one free for the same price . It will be deducted, cleared the register so see, so you this help or do owns the super store on for funnel. It needs the 30 percent off to plus 160 percent off. Hes had special offers for several years now for more than ever before. Only one who usually tell me the full story has to do special offers and lower prices to attract and keep customers because its the only way to do it. Okay. No think it was only so this could be showing no retailer can avoid special offers in the food sector. These that, you know, like all the others care for also relies on low prices. But it seems to have stopped working the this superstore has 17000000 euro is a year in sales. At 1st glance, it seems to be doing well. But the business is in financial trouble. The only guy did we end up with 50000 euros, were doing well in profits we yes. Who you guys are. So i could say, but we wont survive like this for another 10 years. A set for the loop for that would be too dangerous for our employees, jobs and for the survival of the stores. Now in the e commerce platforms are the new players on the market and they are threatening the survival of the traditional stores, dean guns, and then when this is for the past 15 years or so digital, youve seen a steady decline in non food sales. An awesome market system, but this is the area that has the biggest margins, especially in the text. All said topic. If non foods decline, the contents of the profit has to come exclusively from food on to the did that single possible . Because of the 3 mainly when customers by offering lower prices evaluates emotions a very long, and all stores are for more or less the same goods and the store. If you sell a bottle of cook for 0. 10 or more than the store next door, they will be perceived as more expensive. So, especially with roman brown stores, have to be careful with what you do. Thats why they sell them almost without any profit margin. You dont people because you also know the concentration in the food sector is leading to a better price for with consequences for the entire sector. Starting with the stores themselves. The costs for 60 employees, for energy and the maintenance of the building. Its a lot of money. Supermarket operating costs are very high. The to cover these costs. Owners need a minimum profit margin of 20 percent. If its higher, they make a profit. If its lowered a loss as real supposed to be on the plus sign. Good for this product, we have a margin of 4. 85 percent. Because with this one its 2. 88. On a fiscal send year, 16 percent. I now need to discuss the here 10. 8 to see what else on the, for the 12 products weve just seen, the profit margin is not enough to cover the operating costs. Easiest way to mention how do you survive when you say new capacity . I think we try to balance it out with other more profitable goods. The knowledge alone is on the account. Here we have a margin of 4040 percent. Yes. They dont. They have tons of the year. Its 30 percent loan. This will do the year 25, they for yourself also, im about to see the suppliers also have to participate in this price for the if its the low c. C news. If we want to keep prices as low as possible for consumers, well for the then everyone in the chain must do their part for cleaning the sound. These are for see help or to doesnt look after procurement himself to get the best conditions. The 1500 stores in the calf for group have a central procurement facility. The all european corporations have these centers today. Fly leaning in the us in a to im just a few decades ago. Know dates and supplies with the 500000. Sometimes thousands of contacts and you are welcome to the kind of just trying to i did send from one to die off to probably more than 80 percent of the voting amount is coming off the negotiation to 20 people. This isnt these a quantity of consolidation means the negotiations to reduce to vary for you when the total more important comments and passing off. Okay, lets see it on kind of in this even so, and this is actually when it comes to negotiations done in terms and conditions in the annual meeting with a crate that sits down with the consumer. Good sex stuff to use. These tools can become very aggressive and forgot some has the sizes inspired tells us the 2 interests class and i do have to negotiate a lot going on. And that can often be done using heavy handed. Mit happened, bundle competition between the major suppliers and the retail chains is getting tougher and tougher. Individual measures on store level no longer seem to work. So the european chains have joined forces the if on his own go no minutes on like only large retail chains of ground, but so of the supplier also setup print result in the information they become as powerful as the change themselves. Some even more. So thats why the french superstore chains joined forces with other chains in germany, spain, italy, and other European Countries in order to maintain power over the suppliers, and to continue to be able to enforce favorable conditions with them, you know, so, okay, so ill let just let me tell the folks that the big retail chains are innovative and creative, which can be seen really clearly in the international agreements. Theres that go on down that sort of international agreements. They lead to a situation in which suppliers pay money directly to the stores. The negotiations now take place at a european rather than a national level. In europe and chains have joined forces to create for Large International retail alliances. Co pernix made up a French Corporation laclare, the german rarefied group and other partners has over 12500 stores throughout europe. C w t, whose members include co for and cora. This alliance represents the interest of 16000 stores. As a core with the 6 retail chains, including french group into my shape and german retailer advocate deutschland, this collaboration represents 24000 stores. And finally, Verizon International with 15000 stores. The Super Centers are not simply procurement collaborations that buy goods from suppliers. What they actually do is Sell Services to suppliers the, the success really can so much you want to use it. Its very difficult to Source Information about these purchasing alliances this month. And some of them dont even have a website. The husbands is filling out very reticent with press releases, its travis, host, feler. So we gain and lots of our knowledge by talking to supply is all trades companies or hundreds, one to name. The best case if this is your bus. I said, nobody knows whats going on there, whats being sold and at what price. Nobody knows what happens to the money. There are 0 checks and balances, and thats worth thanks to a large number of stores. Calf for has long been the worlds number 2 retailer after the american wal mart group. But on top of the price for the traditional retail chains are waging today, they have to compete against new even more aggressive market players. So as of harsh it is a function is not going this going to show any trends of putting pressure on the launch retail chain. Were going to see i need to invest with them, especially in modernizing their store to keep up with the digital revolution either because they are considerably behind the times in this respect. And then they know it very well, but the competition today is not the store across the street. The online job after conquering a large part of the non 2 sectors, e commerce platforms like amazon, are now launching a major attack on the food sector. And as in that pool of it, it just that core math. So to amazon names to be an all round early because that is to meet all consumer needs. No matter what kind thats about it. And it started with books found and then came electronics and entertainment. Its more and then the tech style sector is of amazon covered at all. I dont know way to separate all, but finally it was the turn the food sector because thats the 2nd largest Household Expenditure item after housing. So it does impose to the polls, the in the United States. The grocery sector is worth a 900000000000. 00 a year. And for several years now, amazon has been revolutionizing it. The giants of american retail are in an unprecedented crisis. On june, 13th, 2017. The sector experienced the black a stay in its history. We are getting some breaking news on hold for or you might have to gas just now. Holy cow, this is such a game changer. Amazon to buy whole foods. This is it. This is what everybody thought could happen. They will now dominate food within the next 2 years. Duly detailed, you say this has consequences for the entire industry, which was already on. Its an easy to do. So Retail Companies in general are losing 10 percent. Walmart is losing 5. 5 percent and cold fall in europe is losing 2. 7 percent. So the, the news caused a stir worldwide. Amazon bought superstore chain whole foods for 13700000000. 00 officially becoming a player in the food retail industry. The f as in tune for hoist. Whats the m as in vice city, how long is the creation of whole foods . Was a shock to the industry . And in fact, it was a wakeup call. And that amazon was serious about making a huge investments in the store network and get a degree, and im very young and its that its not that amazon, that amazon views food as a project. Amazon views food is being strategic. If amazon can convince consumers to order groceries from them to turn to amazon for groceries and food throughout the year for all of their grocery needs, amazon then can easily convert them to buying additional products that amazon sells, whether its furniture or closing or anything else, a whole foods has been said to be a trojan horse for amazon to expand its retail offerings. Go to amazon osh, the one foot, which those are for the amazon purchase of whole foods brought big changes. Amazon began lowering prices on iconic products, such as of a condo is bananas and chicken see here to so kind of put suppliers were told that some of their products were too expensive for amazon, and they needed to lower their prices associated to t bone. You know, those who had only a few goods in their assortment, couldnt keep up. And other suppliers had to accept the new conditions. So the price is at whole foods could generally be lowered whenever you walk into a whole food store. You will quickly realize if youre not a prime member, youre missing out on savings reduction in your grocery costs and new capabilities, new services that you can take advantage of. And so for over a period of only several years, some majority of whole foods, customers who were not prime members, frankly, have already converted. Done. Whats the, whats the next . My face tightness and the 1st of all i mentioned, didnt just biased on that quote, expertise, and brown, potentially on market coughed. They dont purchasing x, but ill ask them, but strong on product. Yeah, some stock supply by asked him to the funding positive calls the amazon learned at the grocery business with whole food. The 3 years later, the online giant went one step further by founding the new superstore chain. Amazon fresh, the, a taylor made concept. Amazon is focusing on medium size stores where it can offer its own brands and all the apartments, the fruits and vegetables, the fresh products, the or products, for instance, the customers can do their Grocery Shopping here and also pick up or return packages they bought online. The amazon has created an ecosystem for consumers that combines digital and physical shopping. The david bishop is a specialist in us retail. This is the amazon dash cart. It allows the customer to simply put the item into the cart so that when theyre done, instead of waiting in a checkout line, they can just walk out with its 4 sensors. The shopping cart can recognize all the products and the store. It is designed to improve the customers shopping experience. Okay, so were going to get a couple roma tomatoes for the family. We enter their po, you, which is a 4 digit code. So 4087, enter. And the says place i know into the cart. Well, it tells you exactly how much you just put in there and ill accept it and weve got our 1st time in the cart. Every item is scanned, automatically, 195, worked pretty well, and its added up directly by the payment software. One of the nice things about the dash card is that if youre on a budget, you can actually see how much youre spending as your shopping, which is obviously Something Different than new. Its practical for customers and very informative for amazon. Because all the habits of the users are stored, the net, the dash cart recognized that i picked up something, but its showing that its removed it from the cart because i put it back on the shelf. The dash part works very similar to the way the online experience works and that helps them better understand those shopping behaviors. The only way for someone like walmart to know that information is to be observing physically in the store. And thats just not simply possible. The shopping cart can also locate the path of each customer minute by minute, centimeter, by centimeter. Amazon wants to know as much as it possibly can about all of us. And how we shop for food is that a really important part of that. They already know so much about how we behave online. What we do when were online, what were looking at, how long and so with the grocery stores, they learned on all of this Additional Information about us. They put that all together and they began to form a picture of who you are. It has an orwellian feel right in the us, amazon set up 12 such super stores and just 8 months. Okay, so i can hit view receipt, got the full receipt, and it looks like im good to go. But setting up such hyper connected stores requires significant initial investment business. And you know, from the very beginning a course strategy of amazons has been we will lose a lot of money and other companies that cant afford to lose money, theyll go under. And then when theyre gone, we will own the market. Uh, the 1st 6 years that amazon was in business, they lost 3000000000. 00 selling books at a loss. And now amazon absolutely dominates the us book industry. So thats how it started, and thats the same strategy that amazon has used in one market after another. I believe the goal for amazon should be to have no less than 25023000 amazon price stores by 23rd. Amazon is worth over a trillion dollars. They easily can make additional acquisitions of other retailers if they want. They can buy all of the available real estate that they want. So amazon absolutely has the potential to become the largest grocery retailer and us wisdom predict with a certain degree of accuracy. What will the grocery industry look like in the United States . What will it look like in europe and other countries around the world based solely on what happens in china . The will Online Retail platforms determine the global food market. In china, the digital giants are not just opening stores. They also want to take over the entire supply chain this super store chain is owned by g d dot com. China is number 2 behind the bottom in 2018, this logistics specialist entered the grocery sector. Ready the corporation targets the new generation of chinese, an affluent and hyper connected middle class that wants more information and services. Poppy wong is 23. She works in import export. She consults her phone when she shopping the. The dealership has on to dollars the past. Todd, all the issue, i want to know everything about the product side by solution is always a baffling of whether theyre organic, just issue with the us. This is why they were grown the child to the head and thats important information. Ok, lets have you saw how the now i have confirmation that its an organic proto, silverdale cologne. Just as important to me. Im to see about that. Yeah. The china has seen many food scandals in the past. The brand therefore focuses on absolute transparency. Yes, heres what i think. What is your thoughts with you . Now . What was it to be hosting your phone digit obtaining data . This allows us to track teachers are allowed to use it all. Sure. We can share this information with customers to give them a better shopping experience. Now you see if you, through this data, we even know which products are in the highest amount of wiggle room. So we always know the latest trying to pay it. So you should have some other players to come, dont know the trends and adapt to them. This exotic fruit, for example, received 98 likes from customers associated to sing the 21st and foremost its about gaining Customer Trust is also for consumers. Theres something called perceptable trust. This is expressed in a smile from the staff member politeness, clear language of the cleanliness, nice music and so on the same scene, then theres rational trust, which is based on numbers and data. So judy dot com is able to provide his customers with a lot of information about a product and one walmart, for example, does not on the oh yeah, hi. Could you find mistakes for me, please . Sure, the, the corporation has set up a Cooking Service and every store were professional chefs. Prepare the purchase goods directly. Try to like a revenue j d dot com has redefined the role of super store clerks. There are no cashiers here. The majority of employees put together, customer orders from the internet about 50 percent of purchases are made on the internet. I say, you know what made out, do i have to be quick as the online orders have to be delivered within 30 minutes . You the sure are you mind spanish officers and, oh, so we dont have much time. I have to complete an order within 5 minutes and they go by then dont lot the time to delivery is key. Even you know, does, and you can come invest of us if i can offer you exactly what youre interested in seeing. Im telling you it will be delivered within 2 hours. I can give you that kind of cost. Thats a good chance. Did you purchase immediately . So phone calls about the situation were working 12 buys it, of, of these is equal to one j d dot com. Now use this self driving vehicles that can deliver to several customers in a row. A self driving electric vehicle is fitted with numerous sensors. The corporation has been working on this project for 5 years. Technical manager global. How is 30 years old . 70 telling, go through that and again, this is the robots 6th tour today. It is only delivered over 90 orders with that horrible how works at the companys headquarters. 150 engineers are working on the development of these self driving delivery trucks. Ex was she ended up in thoughts and you have a dream go sure to house or you are the for the, at the whole idea of some of the we studied the Consumption Habits and picking times of the store, you can to better adapt to each situation was hold on, one of them theyve been, theyve had enough waiting to have a number of daily orders has increased from 30 to about 100. And lets say im a teacher doing what kind of to we can reduce the number of delivery people in this area. Amazing that we studied me because a lot of the packages can be delivered by robot already there. Will there be people who dont find a place to work in grocery in the coming years . Of course. Robots will be unloading trailers. Robots will be real, punishing shelves. Youre not going to need people to do that, but thats ok. Thats what we do as a society, we are always progressing. We will look at the technological revolution will lead to less and less work by humans. The tech giants are already applying the innovations in all areas of the food industry. J. D dot com is said to have invested the equivalent of 2500000 euro. So in this state of the art farm. Here the corporation grows a dozen varieties of vegetables, mainly let us this, which are sold and its paging stores in their immaculate white coats, the employees look more like Lab Technicians than farmers. Theres not much risk of getting dirty here. Well, jones, he manages the farm only thing translated opus thing. We dont want to go to need stories on that same washer or grow vegetables in a nutrient rich liquid. Yeah. Yeah. And so mostly true to reduce the size, so im not sure you go for it. Ill check regularly just on time that the liquid is circulating. Well kinds of thing. Yeah, yeah. I sort of was, i was dealing with a little cultivation takes place in hydroponics. The vegetables grow in the liquid fertilizer, so this means no pesticides are necessary and promises high yields only pay the full time, not just you or my email in case some of the spinning should, can be harvested between 15 and 19 times. So yeah, thats 4. 00 to 5. 00 times more conventional soto content. Although its very expensive to set up the system. How want me to its very profitable. It will be as a call from the call center. So they are the one heck their firm produces up to 110. 00 per day with just 8 employees on a traditional farm, it would take about a dozen employees, the cost a so they want to get it. How do you want to . Does appears on thing. I go for the online giants traditional farming is inefficient, too expensive and the losses are too high. So the tie adult loan. So these farming methods are a good way for them to enter the agricultural sector. They want to optimize their production, become more competitive, reduce cost and waste, and improve quality. The other thing to me, tulsa, generally hold on those fees are their main arguments with chinese suppliers must not miss out on this development here. That youre not sure if i didnt take us a phone call, it shows on the Chinese Agriculture is entering the age of artificial intelligence. The alibaba recently launched the agricultural Brain Program designed to help pig farmers increase their productivity. The bags produce different sounds. When they saw the agricultural brain usually assembled edge to white down to buy at normal things. The accidental wants to the right. Each animal is fitted with a chip. As soon as it is born. What this allows the Health Status of each pick to be monitored in real time x, the cameras and sensors record the animals movements throughout their lives by so arms that have intelligent Disease Control effectively improve the survival way to fix the number of picks or has increased from 22 to 25 last year to 25 to 28 this year with a 10 percent increase in revenue. The traditional chinese farmers risk losing control of their farms when they use these new technologies. Although they need to, ill have to tell you all they need to do is invest in the online giants can dominate the market in a sector. They say they have good intentions and that theres no risk for us. But how can we trust such jobs and all the so in europe, amazon is lying in wait. The American Corporation has already entered into partnerships for the production of its own brands. Several dozen products are available. Amazon has focused on widely used consumer goods that pull from those. Instead of being able to deploy, the range is so expensive that almost all foods can be found under one amazon brand or another. That paradox news. They even have spreads the ranges very well. Find out examples, so it covers almost all consumer needed, but i dont want to any consent to to encourage consumers to buy groceries online. The Online Retailer offers the same Customer Service that has enabled it to dominate the mail order business. With this coffee, for example, amazon prime customers have a choice to keep it or send it back. They get a refund. Just like for any other product sold on the site, the amazon wants to be able to give the customer the opportunity to return it. And it doesnt matter whether its food or a shirt or, or shoes, it doesnt matter. Amazon wants happy customers. And the way to ensure that is by giving those customer choice. But what is the price for this all inclusive Customer Service . To find out, weve included a gps track or with this package, the a cool way to know that you to buy the pool software. This coffee has been on an amazing county district. The club yesterday left paris for Logistics Center in the northeast of the city. And it went to scrapbook across the gym and pulled off at us and sent a check for it and a new move out to them. And the next day, the slovak in full tech. Finally ending up here in this warehouse. And also i dont talk to the, this massive building is amazons european return center. Lock is almost dead center in europe. So its an ideal location to be able to ship products from anywhere in europe. But also we want to look at labor rates. Labor rates are cheaper or lower and still vakio than other parts of europe. Well, so the question really become, should there be a return capability for, for the very special conditions apply to food at amazon . After 2 days, the coffee ends up in this garbage plant. After a journey of 1700 kilometers from france, our coffee, whose minimum shelf life ends in one year, ends up in the waste processing plant. The then yellow works at amazon in full dock. Yeah. Theres a book that i really thought so, but as ive seen returned by customers is completely destroyed and disposed of a local so even though an open packages, oh yes, eligible, but i was up because it was received by the customer. Uh, of course thats all the from the health perspective, it might be good to go, but because you dont know where the product has been and looks like a ball, little wasted on it was good, but as long as the Expiration Date has not passed, i would be more in favor of do need to get to associations, organizations that have a good use for a full arch soft. Im give it to fidelity. It will say in france its illegal to destroy food that is still edible. But these products are the property of amazon europe, whos headquarters are in luxembourg. And neither there nor in slovakia are such practices, forbidden by law the its incredibly wasteful prime, has it conditioned us as consumers to imagine that its that its free, right . Were told this is free, you sign up for this, you get free shipping, you get free returns, its free. But of course its not free, you know, its not free or free environments. And so it creates this mindset where were not, we dont take any responsibility. Amazon explains that return food may not be recycled for reasons of Health Safety and ads that the return of edible goods accounts for less than one percent of returns through its money back guarantee. The American Corporation is said today to generate about 10 percent of sales of consumer goods in france. Signal to the call, you go to new ones because this seems providers are increasingly becoming serious competitors in the entire consumer. Second time, thats dangerous, because the strength is based on the economic mechanisms of growth of community that go to the bigger a company, i dont, the more competitive it is. A 100 teams for those with like behind, kept chopping wood youve dealt with. So the gap is steadily boy, and then it gets to close. In europe, 110th of Grocery Sales are now made without customers entering a store to avoid missing the boat. Traditional suppliers are trying to copy the model of the e commerce giants in particular by offering shorter delivery times. The casino group has set up a super store warehouse where countless robots prepare an order, and under 6 minutes a dark store requires very few staff. But then even fewer customers come into the stores, which further worsens the Economic Situation of a large hypermarkets in viet ones, the largest and s t 5000. 00. If we look at the Department Store in germany, done, the personnel costs are about 12 percent on average, and on the me course. And then the rental costs are about 5 percent by productivity. If not stores average in terms of sales. It seems thats, im good. Its come with a lot of these are fixed costs and when sales come on the pressure because they hit that percentage quickly becomes very high yesterday which has led to the rail truth now being broken off. And thats what they are eating slogan that the future of the 34000. 00 employees of the german fail stores is hanging in the balance in france. Kind of 4 has announced that it will cut 3000. 00 jobs as part of a voluntary redundancy plan. All shop plans to layoff 700 employees and youll disappear conducted. You ask your physical retail continues to shift to Online Retails, it will have a major impact from the number of employees. What the ratio is, 1. 00 to 4. 00. And the automation potentially Online Retail warehouse is good now has considerable. So its likely that many jobs, especially low skilled jobs when you push will be lost in the Retail Sector in the coming years just between. And ill probably, you know, try to get in the office, give teacher at least. And then i think thats up in the some progress in terms of technologies as they have check out the remark, checkouts because there was also going to be a number of fully automated stores. But i think the back button and the bulk of the interaction between the consumer and the retired and is going to be person centered on to it. And as one of the tools icon in the future, those who manage to combine technology and Human Service in a positive way may well come out on top. The shift your guide to life and it get to, to deal with the latest online trend, navigate your way through the digital jungle global perspective. Well be your guide and show you whats possible really matter to you. In 15 minutes on the w, the dream of a family home. These ideals are a life muscle to rescue the planet. It owns on the its a bad optimizing living situations, not maximizing square made and ceiling did without me to think sustainably live differently. Office the saving the route 40 to the um, so to most everything 1st name is d w. The shannon or emphasizing the Award Winning offer is available world wide every language level, learning gym and has of innocent children. Because the, this is the, the news that live from breland morocco gravels, with the aftermath of an adequate morning, begins as a rescue teams to struggle to bring survive as owls of the rubble, the death toll passes. 2000 and hospital struggles to cope with a many injured. Also coming up the g twins, he closes in that e with weld, lead us calling is the success of the 10 union joining the blog. Grasso now takes on the presidency to host next year